The Mumbai bench of NCLT has allowed Jalan Kalrock Consortium’s (JKC) application on ownership transfer of Jet Airways and an extension to make payments.
The two-judge bench including Justice Pradeep Narhari Deshmukh and Shyam Babu Gautam on Friday said that both applications have been allowed.
The matter has been in the NCLT since mid-November last year. JKC, who are the winning bidders for Jet Airways, had moved an application seeking control of the company, and an extension to make payments.
One of the payers of the bench was to get an exclusion on the 180-day period. The 180 days period has been excluded by the bench. JKC gets six months to make payments to creditors. The effective date is November 16.
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The lenders to Jet Airways had opposed this stating the conditions precedents had not been met and were crucial for the revival and profitability of Jet Airways. The lenders said that the consortium has not complied with the requirements including approval of the business plan from the DGCA and MoCA, slot allotment approval, international traffic rights, and approval of the demerger of the ground handling business.
Amid the face-off between the lenders and JKC, some Jet Airways employees have decided to move on to other airlines. Sources say five out of 22 cabin crew, one out of five pilots, and the VP of HR have quit the company in the last three months.
‘However, the company has clarified ‘over 200 professionals continue to be employed by the Jalan-Kalrock Consortium as on date.’
Rohan Rajadhyaksha, a lawyer appearing on behalf of the financial creditor, sought a stay on the order for two weeks which was denied by the bench. Rajadhyaksha said that the order may be infructuous, and hence should be stayed but the bench refused to address it.